By Cameron Hurlburt, Director of Business Development, LSN
Life Science Nation (LSN) staff hear daily from the early-stage companies that cash is king and that they do not have the funds to travel across the globe to attend partnering events… a very bleak picture. On the other hand, LSN sees that many countries and regions with life science innovation ecosystems are funding and subsidizing costs for select cohorts of startups.
Cash for startups surfaces when government, academia and industry collaborate to create funded programs. Thus, we have The Tales of Two Cities. The money goes to the lucky few considered the best of the best, and the majority are left fending for themselves. Welcome to the golden age of life science; thousands of amazing startups with game-changing technologies are forced to figure it out or perish, accounting for a 90%+ failure rate.
The world of the startup CEO, devoid of the elite status moniker, is a constant battle for funds. They resort to every possible means: seeking help from friends and family, applying for more credit cards and even getting a second mortgage. They rely on spouses or partners to pay the bills, work two jobs, write grants, hustle consulting gigs, and spend each day in a 24/7 scramble to survive. The harsh reality is that a small percentage of early-stage companies are being selected for funding, a small percentage are dancing as fast as they can to make ends meet, and the rest are half in and half out of the game because of the cash commitment dynamic.
Investors typically consider 800 startups over a year but only invest in a few. Conversely, startups need to target 800 partners to get a lead investor and a few LPs…thus the 800:3 rule.
LSN has the lowest-cost partnering platform that assists startups in reaching the crucial 800 targets; LSN RESI partnering conferences like RESI Europe. June 17-19, allow more early-stage companies into the game. RESI Boston, September25-27 and RESI JPM, in January round out the RESI conference series. These events offer opportunities for startups to connect with potential investors and partners globally, increasing their chances of securing funding.
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